Important points
- Dormant Cardano wallet lost over $6 million on illiquid ADA to USDA swap.
- The wallet had not been active for five years before this disastrous transaction occurred.
Share this article
Cardano wallet holders today lost more than $6 million in a disastrous swap after five years of inactivity, according to on-chain data reported by ZachXBT.
The owner exchanged 14.4 million ADA tokens worth $6.9 million for 847,000 USDA. USDA is a Cardano-native stablecoin launched by Anzens and designed for fast, low-cost global payments and cross-border transactions in the Cardano ecosystem.
This huge loss was caused by low liquidity in the trading pool, which caused the price to temporarily spike during the trade.
The trade highlights the risks associated with trading large amounts of crypto assets in pools with insufficient liquidity, where large orders can dramatically impact prices and result in unfavorable fill rates.
ADA was trading at $0.48 at the time of writing, down 5.5% in the past 24 hours, according to CoinGecko data.
